BILL NUMBER: AB 2407	CHAPTERED  09/05/00

	CHAPTER   295
	FILED WITH SECRETARY OF STATE   SEPTEMBER 5, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 1, 2000
	PASSED THE ASSEMBLY   AUGUST 22, 2000
	PASSED THE SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   AUGUST 7, 2000
	AMENDED IN SENATE   JUNE 7, 2000
	AMENDED IN SENATE   MAY 16, 2000

INTRODUCED BY   Assembly Member Machado

                        FEBRUARY 24, 2000

   An act to amend Section 11019 of the Government Code, relating to
state government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2407, Machado.  State agency contracts:  advance payments.
   Existing law authorizes specified state agencies that contract
with a community-based private nonprofit agency to make advance
payments on the contract, subject to specified criteria.
   This bill additionally would authorize the Resources Agency to
make advance payments to certified local community conservation corps
under these provisions.
   This bill would incorporate additional changes in Section 11019 of
the Government Code proposed by AB 2876, that would become operative
only if AB 2876 and this bill are both enacted and become effective
on or before January 1, 2001, and this bill is enacted last.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 11019 of the Government Code is amended to
read:
   11019.  (a) Any department or authority specified in subdivision
(b) may, upon determining that an advance payment is essential for
the effective implementation of a program within the provisions of
this section, and to the extent funds are available, advance to a
community-based private nonprofit agency with which it has
contracted, pursuant to federal law and related state law, for the
delivery of services, not to exceed 25 percent of the annual
allocation to be made pursuant to the contract and those laws, during
the fiscal year to the private nonprofit agency.  Advances in excess
of 25 percent may be made on contracts financed by a federal program
when the advances are not prohibited by federal guidelines.  Advance
payments may be provided for services to be performed under any
contract with a total annual contract amount of four hundred thousand
dollars ($400,000) or less.  This amount shall be increased by 5
percent, as determined by the Department of Finance, for each year
commencing with 1989.  Advance payments may also be made with respect
to any contract that the Department of Finance determines has been
entered into with any community-based private nonprofit agency with
modest reserves and potential cash-flow problems.  No advance payment
shall be granted if the total annual contract exceeds four hundred
thousand dollars ($400,000), without the prior approval of the
Department of Finance.
   The specific departments and authority mentioned in subdivision
(b) shall develop a plan to establish control procedures for advance
payments.  Each plan shall include a procedure whereby the department
or authority determines whether or not an advance payment is
essential for the effective implementation of a particular program
being funded.  Each plan shall be approved by the Department of
Finance.
   (b) Subdivision (a) shall apply to the Emergency Medical Service
Authority, the California Department of Aging, the State Department
of Developmental Services, the State Department of Alcohol and Drug
Programs, the Department of Corrections, the Department of Economic
Opportunity, the Employment Development Department, the State
Department of Health Services, the State Department of Mental Health,
the Department of Rehabilitation, the State Department of Social
Services, the Department of the Youth Authority, the State Department
of Education, the area boards on developmental disabilities, the
Organization of Area Boards, the Office of Statewide Health Planning
and Development, and the California Environmental Protection Agency,
including all boards and departments contained therein.
   Subdivision (a) shall also apply to the Health and Welfare Agency,
which may make advance payments, pursuant to the requirements of
that subdivision, to multipurpose senior services projects as
established in Sections 9400 to 9413, inclusive, of the Welfare and
Institutions Code.
   Subdivision (a) shall also apply to the Resources Agency,
including all boards and departments contained in that agency, which
may make advance payment pursuant to the requirements of that
subdivision with respect to grants and contracts awarded to certified
local community conservation corps .
   (c) A county may, upon determining that an advance payment is
essential for the effective implementation of a program within the
provisions of this section, and to the extent funds are available,
and not more frequently than once each fiscal year, advance to a
community-based private nonprofit agency with which it has
contracted, pursuant to any applicable federal or state law, for the
delivery of services, not to exceed 25 percent of the annual
allocation to be made pursuant to the contract and those laws, during
the fiscal year to the private nonprofit agency.
  SEC. 2.  Section 11019 of the Government Code is amended to read:
   11019.  (a) Any department or authority specified in subdivision
(b) may, upon determining that an advance payment is essential for
the effective implementation of a program within the provisions of
this section, and to the extent funds are available, advance to a
community-based private nonprofit agency with which it has
contracted, pursuant to federal law and related state law, for the
delivery of services, not to exceed 25 percent of the annual
allocation to be made pursuant to the contract and those laws, during
the fiscal year to the private nonprofit agency.  Advances in excess
of 25 percent may be made on contracts financed by a federal program
when the advances are not prohibited by federal guidelines.  Advance
payments may be provided for services to be performed under any
contract with a total annual contract amount of four hundred thousand
dollars ($400,000) or less.  This amount shall be increased by 5
percent, as determined by the Department of Finance, for each year
commencing with 1989.  Advance payments may also be made with respect
to any contract that the Department of Finance determines has been
entered into with any community-based private nonprofit agency with
modest reserves and potential cash-flow problems.  No advance payment
shall be granted if the total annual contract exceeds four hundred
thousand dollars ($400,000), without the prior approval of the
Department of Finance.
   The specific departments and authority mentioned in subdivision
(b) shall develop a plan to establish control procedures for advance
payments.  Each plan shall include a procedure whereby the department
or authority determines whether or not an advance payment is
essential for the effective implementation of a particular program
being funded.  Each plan shall be approved by the Department of
Finance.
   (b) Subdivision (a) shall apply to the Emergency Medical Service
Authority, the California Department of Aging, the State Department
of Developmental Services, the State Department of Alcohol and Drug
Programs, the Department of Corrections, the Department of Economic
Opportunity, the Employment Development Department, the State
Department of Health Services, the State Department of Mental Health,
the Department of Rehabilitation, the State Department of Social
Services, the Department of Child Support Services, the Department of
the Youth Authority, the State Department of Education, the area
boards on developmental disabilities, the Organization of Area
Boards, the Office of Statewide Health Planning and Development, and
the California Environmental Protection Agency, including all boards
and departments contained therein.
   Subdivision (a) shall also apply to the Health and Welfare Agency,
which may make advance payments, pursuant to the requirements of
that subdivision, to multipurpose senior services projects as
established in Sections 9400 to 9413, inclusive, of the Welfare and
Institutions Code.
   Subdivision (a) shall also apply to the Resources Agency,
including all boards and departments contained in that agency, which
may make advance payments pursuant to the requirements of that
subdivision with respect to grants and contracts awarded to certified
local community conservation corps.
   (c) A county may, upon determining that an advance payment is
essential for the effective implementation of a program within the
provisions of this section, and to the extent funds are available,
and not more frequently than once each fiscal year, advance to a
community-based private nonprofit agency with which it has
contracted, pursuant to any applicable federal or state law, for the
delivery of services, not to exceed 25 percent of the annual
allocation to be made pursuant to the contract and those laws, during
the fiscal year to the private nonprofit agency.
  SEC. 3.  Section 2 of this bill incorporates amendments to Section
11019 of the Government Code proposed by this bill and AB 2876.  It
shall only become operative if (1) both bills are enacted and become
effective on or before January 1, 2001, (2) each bill amends Section
11019 of the Government Code, and (3) this bill is enacted after AB
2876, in which case Section 11019 of the Government Code, as amended
by AB 2876, shall remain operative only until the operative date of
this bill, at which time Section 2 of this bill shall become
operative, and Section 1 of this bill shall not become operative.
